New Delhi: India’s main opposition party Congress said today that the Income Tax department – under the control of the Bharatiya Janata Party-ruled Union government – has frozen its bank accounts and demanded Rs 210 crore as recovery over an alleged 45-day delay in filing returns and cash contributions from its lawmakers.
Shortly after the press conference the party said that their accounts have been unfrozen. In a video message, Congress leader Vivek Tankha said that the Income Tax Appellate Tribunal un-froze the accounts of the Congress party “pending further hearing.”
Congress treasurer Ajay Maken has said in a statement on X that the Income Tax Department and the Income Tax Appellate Tribunal (ITAT) said in court that the party has to ensure Rs 115 crore in its banks as the lien marked in the accounts.
“We can spend an amount over and above that. This means that Rs 115 crores have been frozen. This Rs 115 crores is much more than we have in our current accounts,” he added.
‘Democracy frozen’
Addressing a press conference in New Delhi, Maken said that both the accounts of the Congress and the Youth Congress have been frozen. He said it is democracy that has, in effect, been “frozen” in India.
“Democracy has completely ended in India. Day before yesterday we found out that the cheques we are issuing are not being honoured by banks. When we looked into this we were told that all the accounts of the country’s main opposition party have been frozen. The account of the Indian National Congress has been locked. Congress party’s accounts have not been frozen but democracy has been frozen,” he said.
Maken pointed to the timing of the freeze.
“By freezing the main opposition parties accounts two weeks before elections are announced, what is the government trying to prove? Not just the Congress, even Youth Congress’s accounts have been frozen last evening,” he added.
‘Pay Rs 210 crores’
“The Income Tax department, after freezing Youth Congress and Congress accounts, has asked for recovery of Rs 210 crores. This is not money from big businesses or corporate accounts or corporate bonds money. This is the money we collected from online crowdfunding,” Maken said.
He added that the Youth Congress’s money was collected through membership drives.
“And this money has been frozen by the government. Corporate bonds money which has been declared unconstitutional by the Supreme Court is now with the BJP and they are spending it. How will democracy survive in India? Democracy has ended. If any political party’s accounts are frozen two weeks before elections are declared, nothing can be more concerning. Will this be a one-party political system? No other party will have the right to survive?”
‘Filed late’
The party has said that their accounts have been frozen in connection with income tax returns being filed late in FY 2018-2019.
“The reason the accounts have been frozen and its timing cannot be more laughable. They have asked for Rs 210 crore in recovery on the basis of the income tax returns filed in FY 2018-19. There are two reasons, that we were supposed to file returns by December 31, 2019 and maybe it was filed 45 days late.
“The second reason is that 2018-19 was an election year. And in that year Congress party had receipts of Rs 199 crores that was spent on elections. Of that Rs 14,40,000 was given in cash by our MPs and MLAs. And because this was given in cash we have been imposed a penalty of Rs 210 crore. Now after five years, just before elections are declared our accounts have been frozen.”
Day after electoral bond judgment
The Congress’ claims come just a day after the Supreme Court declared the electoral bond scheme as unconstitutional and asked the State Bank of India to furnish to the Election Commission of India, the details of donations through electoral bonds – which would presumably include donors – and the details of the political parties which received the contributions.
The scheme was brought by the Narendra Modi government early in 2018. Through it, companies and individuals in India can make anonymous donations to political parties.
The Congress has demanded that if any account should be frozen it should be that of the BJP, which has “received unconstitutional corporate bonds.”
According to a report by election watchdog ADR, which was also one of the petitioners in case in the Supreme Court, the BJP received nearly 90% of all corporate donations in the financial year 2022-23.
In a statement Congress president Mallikarjun Kharge said that the party would take to the streets to protest.
“The UNCONSTITUTIONAL money collected by the BJP would be utilised by them for elections, but the money collected by us through CROWDFUNDING shall be sealed!” he wrote.
“We appeal to the Judiciary to save the multi-party system in this country and protect India’s Democracy. We will take to the streets and fight strongly against this autocracy !”